Questions about System 246 / 256 "preservation"

Due to some random Youtubing and Googling. I have come across some information......

In order to change System 246 / 256 games, you need a DVD disc of the game in question and then the security dongle. And currently it is now possible to modify an existing dongle to run a specific game, thus enabling a "backup" of a system 246 / 256 game. (With say, a duplicate DVD-R of a game with a modified security dongle) is this info correct?